LNG World Shipping

Total inks 10-year supply deal with CMA CGM for LNG newbuilds

A strategic agreement between Total and CMA CGM covers the provision of 300,000 tons of LNG from 2020

Total Marine Fuels (TMF) is set to supply LNG bunker fuel to CMA CGM vessels under a 10-year contract signed yesterday (4 December) in Paris.

The strategic agreement covers the provision of 300,000 tonnes of LNG beginning in 2020 and running through to 2030.

TMF’s liquefied natural gas will fuel CMA CGM’s nine newbuild container ships that are scheduled for delivery from 2020. The giant, 22,000 TEU container ships will be the first of their kind to be LNG-fuelled from the outset.

The move was driven by the need to comply with the upcoming 2020 sulphur cap and ongoing international talks around other forms of emissions reductions, according to CMA CGM.

CMA CGM chief executive Rodolphe Saadé said “LNG is the fuel of the future for shipping. With this groundbreaking decision … the entire maritime industry will benefit from the new supply chains that will be created … [and] we are consolidating France’s prominent role for more sustainable transportation and in favour of the energy transition.”

There have been clear hints of a deal between the two French companies for some time. Earlier this year, the companies signed a memorandum of understanding for Total to supply CMA CGM with LNG in addition to fuel oil with 0.5 percent sulphur content.

According to a statement from TMF, the Total Group is also considering a long-term charter for an LNG bunkering vessel for fuel deliveries to CMA CGM and “other customers” in Europe. CMA CGM has received backing in the move from the French government, which wants to promote LNG fuelling in EU ports.

French-headquartered Bureau Veritas announced today at the Marintec conference in Shanghai it had been awarded the classification contract for CMA CGM's nine containership newbuildings.

As part of its 10-year supply deal with TMF, CMA CGM also agreed in principle to make Total Lubmarine its lubricant supplier.